SSI, Gucci form joint venture company

Tantoco-led upscale retailer Stores Specialists Inc. (SSI) has formed a joint venture company with G Distribution B.V. (Gucci) in a bid to further boost the Gucci brand in the country.

In a disclosure to the Philippine Stock Exchange, SSI said it entered into a joint venture agreement with Gucci on May 17, 2022 to form Luxury Goods Philippines Inc. (LGPI).

The formation of a joint venture firm between SSI and Gucci marks the transition of the two companies from “franchisor-franchisee relationship, to joint venture partners.”

“The joint venture between SSI and Gucci further strengthens the cooperation between Gucci and SSI, and is expected to further accelerate the growth of the Gucci brand in the Philippines and enable operating efficiencies,” SSI said.

SSI said LGPI shall be initially capitalized at P350,000,000, with SSI owning 25% of LGPI and Gucci owning the remaining 75%.

LGPI is expected to commence operations on June 1, 2022, and shall own and operate Gucci stores in the Philippines, it said.

“The Board approved the execution of the joint venture agreement on May 17, 2022,” the company said.—AOL, GMA News